Council Regulation (EC) No 980/2005 of 27 June 2005 applying a scheme of generalised tariff preferences

CHAPTER I

GENERAL PROVISIONS

Article 1

This Regulation provides for:

(a) a general arrangement,

(b) a special incentive arrangement for sustainable development and good governance,

(c) a special arrangement for least developed countries.

Article 2

The beneficiary countries of the arrangements referred to in Article 1(2) are listed in Annex I.

Article 3

Article 4

The products included in the arrangements referred to in points (a) and (b) of Article 1(2) are listed in Annex II.

Article 5

Article 6

For the purposes of this Regulation:

(a) ‘Common Customs Tariff duties’ means the duties specified in Part Two of Annex I to Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (⁶), except those duties set up within the framework of tariff quotas;

(b) ‘Section’ means any of the sections of the Common Customs Tariff as adopted by Regulation (EEC) No 2658/87. For the purposes of this Regulation only, Section XI is treated as two separate sections: Section XI(a) comprising Common Customs Tariff chapters 50-60 and Section XI(b) comprising Common Customs Tariff chapters 61-63;

(c) ‘Committee’ means the Committee referred to in Article 28.

CHAPTER II

ARRANGEMENTS AND TARIFF PREFERENCES

SECTION 1

General arrangement

Article 7

SECTION 2

Special incentive arrangement for sustainable development and good governance

Article 8

Article 9

The special incentive arrangement for sustainable development and good governance may be granted to a country which:

(a) has ratified and effectively implemented the conventions listed in Part A of Annex III, and

(b) has ratified and effectively implemented at least seven of the conventions listed in Part B of Annex III, and

(c) commits itself to ratify and effectively implement by 31 December 2008 those conventions listed in Part B of Annex III which it has not yet ratified and effectively implemented, and

(d) gives an undertaking to maintain the ratification of the conventions and their implementing legislation and measures and which accepts regular monitoring and review of its implementation record in accordance with the implementation provisions of the conventions it has ratified, and

(e) is considered as a vulnerable country as defined in paragraph 3.

By way of derogation from paragraph 1 (a) and (c) for countries faced with specific constitutional constraints, the special incentive arrangement for sustainable development and good governance may be granted to a country which has not ratified and effectively implemented a maximum of two of the sixteen conventions listed in Part A of Annex III provided:

(a) that a formal commitment has been made by the country concerned to sign, ratify and implement any missing Convention should it be ascertained that there exists no incompatibility with its Constitution no later than 31 October 2005, and

(b) in case of an incompatibility with its Constitution, the country concerned has formally committed itself to sign and ratify any missing Convention no later than 31 December 2006.

Before the end of 2006, the Commission shall report to the Council on the compliance by a country concerned with the above-mentioned commitments. The granting of the special incentive arrangement for sustainable development and good governance to this country beyond 1 January 2007 is subject to a Council decision. As appropriate, and on the basis of the abovementioned report, the Commission shall propose to the Council such a continuation.

A vulnerable country is one:

(a) that is not classified by the World Bank as a high income country during three consecutive years, and whose five largest sections of its GSP-covered imports to the Community represent more than 75 % in value of its total GSP-covered imports, and

(b) whose GSP-covered imports to the Community represent less than 1 % in value of total GSP-covered imports to the Community.

The data to be used are those available on 1 September 2004, as an average over three consecutive years.

Article 10

Without prejudice to paragraph 3, the special incentive arrangement for sustainable development and good governance shall be granted if the following conditions are met:

(a) a country or territory listed in Annex I has made a request to that effect by 31 October 2005, and

(b) an examination of the request shows that the requesting country fulfils the conditions laid down in Article 9(1), (2) and (3).

Article 11

SECTION 3

Special arrangement for least developed countries

Article 12

Article 13

Article 12 (4) and provisions of Article 12(5) referring to products of tariff subheading 1701 11 10 shall not apply to products originating in countries benefiting from the preferences referred to in this section and released for free circulation in the French overseas departments.

SECTION 4

Common provisions

Article 14

Article 15

CHAPTER III

TEMPORARY WITHDRAWAL AND SAFEGUARD PROVISIONS

SECTION 1

Temporary withdrawal

Article 16

The preferential arrangements provided for in this Regulation may be temporarily withdrawn, in respect of all or of certain products, originating in a beneficiary country, for any of the following reasons:

(a) serious and systematic violations of principles laid down in the conventions listed in Part A of Annex III, on the basis of the conclusion of the relevant monitoring bodies;

(b) export of goods made by prison labour;

(c) serious shortcomings in customs controls on export or transit of drugs (illicit substancesor precursors), or failure to comply with international conventions on money-laundering;

(d) serious and systematic unfair trading practices which have an adverse effect on the Community industry and have not been addressed by the beneficiary country. For those unfair trading practices which are prohibited or actionable under the WTO Agreements, the application of this Article shall be based on a previous determination to that effect by the competent WTO body;

(e) serious and systematic infringements of the objectives of regional fishery organizations or arrangements to which the Community is a member concerning the conservation and management of fishery resources.

Article 17

The administrative cooperation referred to in paragraph 1 requires, inter alia, that a beneficiary country:

(a) communicate to the Commission and update the information necessary for the implementation of the rules of origin and the control of respect thereof;

(b) assist the Community by carrying out, on request of the customs authorities of Member States, subsequent verification of origin and communicate its results in time;

(c) assist the Community by allowing the Commission, in coordination and close cooperation with the competent authorities of the Member States, to conduct Community administrative and investigative cooperation missions in that country, in order to verify the authenticity of documents or the accuracy of information relevant for granting the benefit of the arrangements referred to in Article 1(2);

(d) carry out or arrange for appropriate inquiries to identify and prevent contravention of the rules of origin;

(e) comply or ensure compliance with the rules of origin in respect of regional cumulation, within the meaning of Regulation (EEC) No 2454/93, if the country benefits therefrom;

(f) assist the Community in the verification of conduct where there is a presumption of origin-related fraud. The existence of fraud may be presumed where imports of products under the preferential regimes granted under this Regulation massively exceed the usual levels of exports of the beneficiary country.

The Commission may suspend the preferential arrangements provided for in this Regulation in respect of all or of certain products, originating in a beneficiary country, where it considers that there is sufficient evidence that temporary withdrawal would be justified for the reasons referred to in paragraphs 1 and 2, provided that it has first:

— informed the Committee;

— called on the Member States to take such precautionary measures as are necessary in order to safeguard the Community's financial interests and/or secure compliance by the beneficiary country with its obligations;

— published a notice in the Official Journal of the European Union stating that there are grounds for reasonable doubts about the application of the preferential arrangements and/or compliance by the beneficiary country with its obligations, which may call into question its right to continue enjoying the benefits granted by this Regulation.

The Commission shall inform the beneficiary country concerned of any decision taken in accordance with this paragraph, before it becomes effective. The Commission shall also notify the Committee thereof.

Article 18

Article 19

Article 20

SECTION 2

Safeguard clause

Article 21

In examining whether there are serious difficulties, the Commission shall take account, inter alia, of the following factors concerning Community producers where the information is available:

— market share,

— production,

— stocks,

— production capacity,

— bankruptcies,

— profitability,

— capacity utilisation,

— employment,

— imports,

— prices.

Where imports of products of section XI(b), as referred to in Article 14(1), originating in a beneficiary country:

(a) increase by at least 20 % in quantity (by volume) as compared to the previous calendar year, or

(b) exceed 12,5 % of the value of Community imports of products from section XI(b) from all countries and territories listed in Annex I during any twelve months period,

the Commission, on the 1st of January of every year during the period of application of this Regulation, on its own initiative or at the request of a Member State and after informing the Committee, shall remove the preferences referred to in Articles 7 and 8 with respect to products from section XI(b). This provision shall not apply to countries benefiting from the special arrangement for least developed countries referred to in Article 12 and to countries whose share of imports into the Community as defined in Article 14(1) do not exceed 8 %. The Commission shall notify a beneficiary country of the removal of the preferences. The removal of the preferences shall take effect two months after the publication of the Commission's decision to this effect in the Official Journal of the European Union.

Article 22

Where imports of products included in Annex I to the Treaty cause, or threaten to cause, serious disturbance to Community markets, in particular to one or more of the outermost regions, or these markets' regulatory mechanisms, the Commission, on request of a Member State or on its own initiative, may suspend the preferential arrangements in respect of the products concerned after consulting the management committee for the relevant common market organisation.

Article 23

SECTION 3

Surveillance measures in the agricultural sector

Article 24

Products in Chapters 1 to 24 originating in beneficiary countries may be subject to a special surveillance mechanism in order to avoid disturbances in the Community market. The Commission, on its own initiative or on the request of a Member State, shall decide the products on which this surveillance list shall be applied.

All periods mentioned in Article 21 which exceed 2 months shall be reduced to 2 months in the following cases:

— when the beneficiary country does not comply with the rules of origin or does not provide the administrative cooperation required in Article 17, or

— when imports of products in Chapters 1 to 24 under the preferential regimes granted under this Regulation massively exceed the usual levels of exports of the beneficiary country.

SECTION 4

Common provision

Article 25

Nothing in this Chapter shall affect the application of safeguard clauses adopted as part of the Common Agricultural Policy under Article 37 of the Treaty, or as part of the Common Trade Policy under Article 133 of the Treaty, or any other safeguard clauses which may be applied.

CHAPTER IV

PROCEDURAL PROVISIONS

Article 26

The Commission shall in accordance with the procedure referred to in Article 28(5) adopt changes to the Annexes to this Regulation made necessary:

(a) by amendments to the Combined Nomenclature;

(b) by changes in the international status or classification of countries or territories;

(c) by the application of Article 3(2);

(d) if a country has reached the thresholds set out in Article 3(1);

(e) for the establishment of the final list of beneficiary countries by 15 December 2005 at the latest in accordance with Article 11.

Article 27

Article 28

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at 3 months.

CHAPTER V

FINAL AND TRANSITIONAL PROVISIONS

Article 29

Council Regulation (EC) No 552/97 (¹²), which refers to Council Regulations (EC) No 3281/94 (¹³) and (EC) No 1256/96 (¹⁴), shall be considered to refer to the corresponding provisions of this Regulation. Commission Regulations (EC) No 1381/2002 (¹⁵) and (EC) No 1401/2002 (¹⁶), which refer to Regulation (EC) No 2501/2001, shall be considered to refer to the corresponding provisions of this Regulation.

Article 30

This Regulation shall be binding in its entirety and directly applicable in all Member States.

ANNEX I